NCUA Board Assesses 9.5 Basis Points for Corporate Stabilization Fund
July 24, 2012
July 24, 2012
At its open board meeting this morning, the National Credit Union Administration (NCUA) announced an assessment of 9.5 basis points for federally insured credit unions to fund the 2012 Temporary Corporate Credit Union Stabilization Fund (TCCUSF).
The full assessment will total $790.53, an amount that represents the lowest total assessment since 2009’s $337.4 million figure. The funds go toward repaying corporate credit union liabilities, and assessment payments, due Oct. 9, should be expensed in August and reported on Sept. 30 call reports.
Credit Union National Association (CUNA) President and CEO Bill Cheney urged the NCUA in a letter to set the assessment at the lowest end of its projected eight-to-11 basis point of insured shares range. Considering that estimates of total remaining TCCUSF assessments are still in the range of $4 billion to $4.5 billion, the 2012 assessment should charge credit unions “no more than is necessary for liquidity purposes,” Cheney wrote.
The CUNA letter was sent ahead of today’s NCUA open board meeting. The agenda for the meeting includes:
- Adjustments to the agency’s 2012 operating budget;
- Discussions of the interest rate cap for federal credit unions;
- A proposed rule addressing the agency’s definition of a credit union that is in “troubled condition”;
- A briefing on an interagency Truth in Lending Act proposal;
- A report on the status of the agency’s insurance funds; and
- A new emergency liquidity regulation.
Bill Hampel, CUNA’s chief economist, had predicted in a June letter to Cheney that credit unions would be paying 10 basis points on all insured deposits for the next six years to pay back the Treasury for its cash infusion of the NCUA’s Corporate Stabilization Fund—an estimate higher than expected after the NCUA’s website had optimistically indicated that the remaining assessments were in the “$1.9 billion to $6.2 billion” range.
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